How To Understand And Understand The Crisis Situation In Scandinavian Airlines

Transcription

1 SITUATIONAL CRISIS COMMUNICATION THEORY: ITS USE IN A COMPLEX CRISIS WITH SCANDINAVIAN AIRLINES GROUNDING OF DASH 8-Q400 AIRPLANES By Helene Stavem Kyhn Master Thesis in Corporate Communication December 2008 Department of language and business communications, Aarhus School of Business Supervisor: Finn Frandsen

2 CONTENTS Summary.4 Preface 5 List of Abbreviations..6 1 INTRODUCTION Background Aim and problem statement..8 2 METHOD Overview of the thesis Data collection for the case study The case study method CRISES: THEORETICAL FRAMEWORK Crisis defined Crisis management Crisis communication SITUATIONAL CRISIS COMMUNICATION THEORY (SCCT) Introduction to the SCCT Sources of inspiration for the SCCT Attribution theory Relationship management Neo-institutionalism Coombs symbolic approach in The crisis situation Crisis response strategies Matching process Development of the SCCT from 1995 to The crisis situation Crisis response strategies Matching process SCCT guidelines (2007) CASE STUDY: SCANDINAVIAN AIRLINES AND ACCIDENTS WITH THE DASH 8-Q Scandinavian Airlines (SAS)..46 2

3 5.1 1 Presentation of Scandinavian Airlines Scandinavian Airlines stakeholders Crisis history and relationship history Stakeholders perceptions of SAS previous crisis history Scandinavian Airlines crisis in Flight 1209: Aalborg on September Flight 2748: Vilnius on September Flight 2867: Copenhagen on October CASE ANALYSIS AND DISCUSSION Stakeholders perceptions and responses to the crisis Flight 1209: Aalborg on September Flight 2748: Vilnius on September Flight 2867: Copenhagen on October Overall reactions by the stakeholders Scandinavian Airlines response to the crisis Flight 1209: Aalborg on September Flight 2748: Vilnius on September Flight 2867: Copenhagen on October How SAS acted relative to Coombs recommendations The impact of the crisis on SAS reputation Applicability of the SCCT Methodological issues and limitations Implications/conclusions.84 7 REFERENCES.86 List of tables List of figures The extent of this thesis is characters, corresponding to standard pages excluding spaces, table of contents and references. 3

4 Summary Organizational crises and disasters are becoming increasingly frequent and devastating. In fact, business crises occur daily. One major threat of a crisis is that it might damage the corporate reputation. While most crises have early warning signals that might be detected and acted upon, and thereby prevented, an organization must at times directly respond to threats to their good names. A growing body of crisis management research has emerged that focuses on how communication are best used to protect the organization s reputation during a crisis. W. Timothy Coombs has developed one influential theory in this field. His Situational Crisis Communication Theory (SCCT) is a theory-based, empirically tested method for selecting crisis response strategies. Coombs introduced the SCCT in 1995 as a symbolic approach to crisis communication, but has during the last 13 years tested, refined, and developed it into a more coherent theory. The SCCT consists of three core elements: (1) the crisis situation, (2) crisis response strategies, and (3) a system for matching the crisis situation and crisis response strategies. SCCT recommends selecting the crisis response strategies that are appropriate to the characteristics of the crisis situation. Although the SCCT is premised on the belief that it is the stakeholders perceptions of the crisis situation that decide what response strategies are appropriate, Coombs has been critiqued for treating stakeholders as a unitary actor. The SCCT does not acknowledge the fact that different groups of stakeholders might view a crisis situation differently. To explore this issue further, a case study of a crisis that Scandinavian Airlines System (SAS) experienced in 2007 that resulted in the grounding of Dash 8-Q400 aircraft was employed in this thesis. This crisis affected and involved multiple groups of stakeholders, such as customers, employees, suppliers and the government. The stakeholders perceptions and responses to the crisis were analysed through Danish news articles. Further, the communication strategies that SAS employed in response to the crisis were assessed through company press releases and statements in the media, using the analysis of SCCT and relating SAS actions to prescriptions from the SCCT in similar situations. The analysis of the case study confirms that the SCCT was applicable in this complex crisis situation, in that the stakeholders perceptions were relatively consistent and did not vary noteworthy, suggesting that the SCCT is applicable also in situations where there are multiple actors involved. Although SAS overall did not follow the prescriptions from the SCCT, certain measures indicated that the corporate reputation was preserved after the crisis. 4

5 Preface The Situational Crisis Communication Theory (SCCT) caught my interest in a course in corporate communications during the second semester of my master study programme. I used my project report that semester to explore the SCCT. This report was limited to 15 pages, which only allowed a brief exploration of the theory. I decided that I wanted to use my master s thesis to explore the SCCT more in depth. Although there is something appealing about the SCCT and its normative guidelines for selecting crisis response strategies, I must admit that my first thoughts were somewhat sceptical. Could it really be that simple? Might not an actual crisis be more complex than the theory takes into account? If it is this simple, why do so many organizations fail to protect their reputation during a crisis? After discussing it with my supervisor, I decided to investigate this complex issue further. 5

6 List of abbreviations EASA European Aviation Safety Agency CM Crisis Management CRS Crisis Response Strategies Dash 8 Dash 8-Q400 NAS - Norwegian Air Shuttle NTB Norsk Telegrambyrå AS RI Reputation Institute SAS Scandinavian Airlines System SCCT Situational Crisis Communication Theory STK - Skandinavisk Tilsynskontor Q400 Dash 8 Q400 6

7 1 INTRODUCTION 1.1 Background Crises are no longer rare, random or peripheral, but have become an inevitable and natural feature of our everyday lives and an integral feature of the new information/systems age. Hardly a day goes by without the occurrence of a new crisis, or the unfolding and dragging on of old ones (Mitroff and Anagnos 2001: 3-4). The world has recently witnessed a severe increase in crises of all kinds. It is literally crisis du jour, or the crisis of the day. Major crises can happen anywhere, anytime and to anyone (Mitroff and Anagnos 2001: 20, 21). No company, no matter how financially successful, powerful or reputable, is immune to crises (Regester and Larkin 2005: 142). Crises are threats that actually do or have the potential to severely damage an organisation (Coombs 1999b: 1, 3). An organization faces a variety of challenges during a crisis. One challenge is to protect/rebuild the organization s reputation (Coombs 2004a: 276). Regester and Larkin explain that the forces of globalisation and the internet are pushing us from a so called old world or industrial economy, dependent on the value of physical assets such as property and equipment, to a new world or knowledge economy characterised by the intangible assets of reputation, knowledge, competencies, innovation, leadership, culture and loyalty (2005: 2). Good corporate reputations are increasingly recognized as having strategic value for an organization because it offers competitive advantage as an intangible asset (Cornelissen 2006: 79; Coombs 2007d: 164). In the global marketplace, differentiation is increasingly the crucial determinant of competitive advantage rather than price. A good corporate reputation will attract employees, investors and customers (Tucker and Melewar 2005: 379). According to Fombrun (quoted in Cornelissen 2006: 83) reputation is a perceptual representation of a company s past actions and future prospects that describe the firm s overall appeal to all of its key constituents when compared to other leading rivals. Cornelissen explains that there are certain elements of importance in this definition. Firstly, a reputation is stakeholders perceptions of an organisation. Secondly, multiple stakeholder groups, who are likely to form different perceptions of an organisation, form a reputation. Thirdly, a reputation involves evaluation by stakeholders, meaning that reputations are long lasting and stable and develop with the stakeholders over time (2006: 83-85). Crises threaten to damage reputations because a crisis gives people reasons to think badly of the organization (Coombs 2007d: 164). Threats to reputation, whether real or perceived, can destroy, literally in hours or days, an image or brand developed and invested in 7

8 over decades. These threats need to be anticipated, understood and planned for (Regester and Larkin 2005: 2). Coombs suggests that because no organisation is immune to crises, all organisations should learn as much as they can about how to manage crises (1999b: 1,3). Over the past ten years, a rapidly growing body of crisis management research has emerged that focuses on what organizations say and do after a crisis hits, the use of crisis response strategies. The focus of this research is on the use of communication to protect the organization s reputation during a crisis (Coombs 2006c: 242). Coombs have offered the Situational Crisis Communication Theory (SCCT) as a theoretical framework to integrate the various ideas that have emerged from the crisis response research. Briefly, the SCCT holds that to protect a reputation, the responsibility acceptance of the organization s crisis response must be consistent with the stakeholder attributions of crisis responsibility generated by the crisis (Coombs 2006b: 175). Just as multiple stakeholders multiple perceptions of an organization form a corporate reputation (Cornelissen 2006), a crisis will affect multiple groups of stakeholders (Shrivastava and Mitroff 1987: 6). Lee claims that Coombs categorization of crisis types overlooks the possible variations of attributions that may occur within a particular crisis. An audience could vary in their opinion that a company is accountable for a particular crisis (2004: 602). She suggests that future studies would have enhanced validity if they included the analysis of stakeholders opinions expressed in newspapers or the Internet (Lee 2004: 614). Coombs does not devote much attention to this central issue of differentiated stakeholder attributions in his research, but treats stakeholders as if they were one big homogeneous group (Johansen and Frandsen 2007: 245). This, however, is the focus of this thesis Aim and problem statement The objective of this report is to give the reader a thorough understanding of the Situational Crisis Communication Theory, the theory s development, and to examine the theory in a new context with multiple actors. The following is the report s problem statement: To what extent can the Situational Crisis Communication Theory (SCCT) be applied to complex crises involving multiple groups of stakeholders? More specifically, this thesis aims to: (1) Present the SCCT and the theory s development from 1995 to

9 (2) Examine the SCCT s applicability in a complex crisis case with multiple groups of stakeholders, by assessing what crisis response strategies SAS used after the accidents with the Dash 8 aircraft. Although Coombs himself have provided excellent overviews of the research conducted in relation to the SCCT and the successful and the failed applications of the tests (Coombs 2004a; Coombs and Holladay 2004), there is no one complete examination of the development and changes made to the SCCT since its introduction in

10 2 METHOD This chapter gives an overview of the approach used in this thesis. 2.1 Overview of the thesis The first part of the thesis, that is chapter 3 and 4, describes a theoretical framework to understand and describe crises, the SCCT, and its development. To be able to describe and explain how the theory has evolved, it was necessary to collect all of Coombs works and research using the SCCT since the introduction in This was achieved through systematic examinations of reference lists from Coombs works and other authors discussing the SCCT, and bibliographic searches on the internet. The date of publishing of the works is used to explain the development of the theory, which could differ from the order in which Coombs produced them. The second part of the thesis, namely chapter 5, is a case study, where the framework of the SCCT is used. To apply the SCCT, a complex crisis case that involved and affected multiple groups of stakeholders was selected. The case examines the crisis that Scandinavian Airlines experienced in 2007, which resulted in the airline permanently grounding 27 Dash 8- Q400 aircraft produced by Bombardier. The third part of the thesis, chapter 6, is an analysis and discussion of the case. Here, the stakeholders and SAS perceptions and responses are described and discussed; again using the framework described in chapter 4 and relating the actions to the SCCT. 2.2 Data collection for the case study The Scandinavian Airlines Dash 8-Q400 case received a lot of media attention, and a large amount of material exists that could have been used in this thesis. I have chosen to use news articles and press releases about the incidents, SAS and the important stakeholders for the analysis in this report. SAS press releases and news stories were retrieved from the organization s web page ( where there there is an archive. This archive provides access to all press releases that SAS released in response to its crisis. Relevant news articles were retrieved from the Danish news archive Infomedia. The selected articles are mainly collected from Danish national newspapers from September 9, 2007, when the first landing incident happened, until November 1, 2007, about a week after the latest accident. The articles were identified through systematic database searches and selected based on perceived relevance for the case analysis. 10

11 To be considered relevant, the articles had to contain stakeholders or SAS spokespersons statements regarding the crisis. The reason for using a Danish news archive to assess the crisis is that two of the accidents happened at Danish airports, and the last accident aircraft took of from a Danish airport, resulting in the crisis receiving the most attention in Denmark. It could be that other methods for data collection, such as interviews or survey questionnaires, would have yielded different results and more accurately accounted for the various actors opinions toward the crisis. However, secondary sources of data, such as news articles and media interviews, do reveal a lot about the attitudes and values attached to certain phenomenon or the reality of society (Askheim and Grenness 2000: ). Moreover, the opinions of stakeholders are to a large degree based on information from the media. The publics perceive not the objective facts of a crisis event, but the facts as constructed by the media or news releases from the organization in crisis (Cho and Gover 2006: 420). 2.3 The case study method Case study methods involve systematically gathering enough information about a particular person, social setting, event, or group to permit the researcher to understand effectively how the subject operates or functions. The case study is not actually a data-gathering technique but a methodological approach that incorporates a number of data-gathering measures (Berg 2004: 251). Researchers have different purposes for studying cases. The case study in this thesis can be classified as an instrumental case study (Stake 1994 in Berg 2004: 256), in that it seeks to provide insights into an issue or refine a theoretical explanation. The case study actually becomes of secondary importance in that it serves a supportive role, a background against which the actual research interest plays out. The intention is to assist the researcher to understand better some external theoretical question or problem. Instrumental case studies may or may not be viewed as typical of other cases (Berg 2004: 256). The SAS crisis case was chosen because the researcher believes that her own and others understanding about the SCCT will be advanced when studied and applied to this specific crisis situation. Further, this case study can be classified as a descriptive case study (Winston 1997: 4). A descriptive case exploration requires that the investigator presents a descriptive theory, which establishes the overall framework for the investigator to follow throughout the study (Berg 2004: 257). The SCCT constitutes the theoretical framework for the case study in this thesis. As will be explained in more detail in chapter 4, the SCCT outlines specific steps for a 11

12 crisis manger to follow in order to evaluate a crisis situation and choose the appropriate responses. The SAS case study is presented following the same procedures. 12

13 3 CRISIS: THEORETICAL FRAMEWORK The literature on crisis communication and crisis management is fragmented, as people write about crises from very different perspectives (Coombs 2007c: x). Authors often focus on their specialties and fail to make connections to ideas and concepts developed in other specialties. In turn, this fragmentation prevents a fuller understanding of crisis management gained by integrating the various perspectives (Coombs 2007c: x). Both as a field of research and as a corporate function, crisis management (CM) is still new, and as a result is neither well understood or widely accepted (Mitroff 1994: 101). 3.1 Crisis defined Regester and Larkin claim that in business as in life, crises come in as many varieties as the common cold. The spectrum is so wide it is impossible to list each type (2005: 133). No two crises are alike. Each has its own causal factors, ramifications, duration, rhythm, and unknowns (Dilenschneider 2000: 121). A crisis does not necessarily mean casualties or personal injuries by the hundreds with devastating effects. A crisis may also be the result of some undesirable, and often banal, situation that may have a negative impact on the organization in some respect (Fagerli and Johansen 2003: 233). A crisis imposes severe strain on the organization s financial, physical, and emotional structures, and might even jeopardise the survival of the whole organization (Pearson and Mitroff 1993: 49). There are many books written about crisis management but there is no one accepted definition of a crisis (Coombs 2007c: 2). One reason for this might be the many different perspectives and focuses of researchers writing in this discipline. Fearn-Banks (2002: 2) defines a crisis as a major occurrence with a potentially negative outcome affecting an organization, company or industry, as well as its publics, products, services or, good name. She explains that crises interrupts normal business transactions and can sometimes threaten the existence of an organisation. Mitroff and Anagnos (2001: 34-35) suggests, a crisis is an event that affects or has the potential to affect the whole of an organisation. If something affects only a small and isolated part of an organisation, it may not be a major crisis. A major crisis is something that cannot be completely contained within the walls of an organization. Each corporate actor exists within a complex web of relationships with other organizations that can stimulate, constrain, or challenge its actions (Allen and Caillouet 1994: 44). It is no longer enough for any organization to consider merely its own crisis management 13

14 interests in isolation from the environment. A crisis has the potential to affect not only the organization and its products, but also the broadest array of potential stakeholders: consumers, competitors, suppliers, and members of their general environment (Pearson and Mitroff 1993: 57). It has even been suggested that a crisis in one corporation has the ability to threaten an entire industry (Coombs 2006a: 5). Their inherent ambiguity further complicates crises (Ulmer and Sellnow 2000: 146). Pearson and Clair (1998: 60) suggests that: An organizational crisis is a low-probability, high-impact event that threatens the viability of the organization and is characterized by ambiguity of cause, effect, and means of resolution, as well as by a belief that decisions must be made swiftly. The larger the amount of ambiguity surrounding a crisis, the greater its uncertainty (Coombs 1999b: 92). The uncertainty surrounding a crisis situation creates pressures for explanation or accounts of why the crisis has occurred, and the actions necessary to resolve it (Dutton 1986: 509). Ambiguity demands to be resolved, and organizations must expend extra effort and resources when crisis ambiguity increases (Coombs 1999b: 92-93). However, crises are also characterized as information-poor and knowledge-poor situations (Coombs 2007c: 113). Typically, an organization does not know the cause of an accident, it is difficult to collect the necessary information or the information is not immediately available, or the complexity of the situation makes it difficult to get an overview (Johansen and Frandsen 2007: 167). Mysteries around a crisis may increase and keep attention from the media and publics for a longer time (Coombs 1999b: 92-93). Virtually no crisis ever happens in isolation, and the simultaneous occurrence of multiple crises is the norm. If handled improperly, every crisis can set off a chain reaction of other crises (Pearson and Mitroff 1993: 52; Mitroff 1994: 105). Davies, Chun, da Silva and Roper (2003: 99) suggests that a crisis is an event or series of events that can damage a company s reputation. They explain that typically crises interfere with normal operations, attract external, particularly media, attention, damage profitability, and escalate if not well handled. Johansen and Frandsen (2007: 79) offer a definition of a specific sort of crisis escalation, what they term a double-crisis or a communications-crisis. A double-crisis is a crisis, where the original crisis is superposed by a communications-crisis, as the organization fails in managing the communication processes that should have contributed to the handling of the original crisis. They explain that the handling of a crisis set off a communicationscrisis, and that their definition considers both types as crises. Crises are, by definition, dynamic unanticipated events, characterized by high levels of uncertainty. Real crisis rarely 14

15 follow planning scenarios (Seeger, Sellnow and Ulmer 2001: 159). In fact, a cardinal rule of crisis management is that no crisis ever unfolds exactly as it was envisioned or planned for (Mitroff, Shrivastava and Udwadia 1987: 285). Another definition of crises that captures many of the common traits other writers have used when describing crises is suggested by Coombs: the perception of an unpredictable event that threatens important expectancies of stakeholders and can seriously impact an organization s performance and generate negative outcomes Coombs (2007c: 2). Coombs explains that a crisis is perceptual, and that it is the perception of an organization s stakeholders that help define an event as a crisis. If the stakeholders believe that an organization is in crisis, a crisis does exist. Further, a crisis is unpredictable but not unexpected. Wise organizations know that they will experience crises, they just do not know when. A crisis may also violate expectations that stakeholders hold about how organizations should act. When these expectations are breached, stakeholders perceive the organization less positively and the reputation is harmed. Coombs further claims that a crisis has a serious impact on an organization in that it disrupts or affects the entire organization or has the potential to do so. Last, crises have the potential to create negative or undesirable outcomes for organizations, their stakeholders, and their industries (2007c: 3-4). From the above discussion of different crises definitions and perspectives, several factors emerge, which complicate and add to the complexity of a crisis: Multiple groups of stakeholders involved in the crisis. Multiple organizations involved in the crisis. Lack of necessary crisis related information, resulting in ambiguity toward crisis evidence, the organization s intentions and its responsibility for the crisis. A crisis is dynamic, in that it is not static and might well evolve in unforeseen directions over time, sometimes resulting in additional crises for an organization to handle. Fagerli and Johansen explain that they strongly believe that, except in many cases of natural disaster, every crisis is foreseeable and that the difficult part is foreseeing when the crisis will occur (2003: 233). Whereas public relations practitioners cannot always predict a specific disaster or crisis, they can anticipate that the unexpected will occur. It is the unexpected nature of events that creates a crisis (Cutlip, Center and Broom 2006: 326). What all crises 15

16 have in common is that if a company prepares itself for a crisis, it has a better chance of getting some degree of control over the crisis (Dilenschneider 2000: 121). 3.2 Crisis management The most common practice for dealing with crises in organisations is called crisis management (CM). CM has been extensively researched over the past few years, and, like crisis itself, has been variously defined by many different authors (Fagerli and Johansen 2003: 237). Fearn-Banks (2001: 480) definition of the concept is as follows Crisis management is strategic planning to prevent and respond during a crisis or negative occurrence, a process that removes some of the risk and uncertainty and allows the organization to be in greater control of its destiny. She further explains (Fearn-Banks 1996: 2) that in a crisis, emotions are on edge, brains are not fully functioning, and events are occurring so rapidly that drafting a plan during a crisis is unthinkable, and simply following one is difficult. The objective of organizational CM is to make timely decisions based on best facts and clear thinking when operating under extraordinary conditions (Pearson 2002: 70). If one has, a thorough understanding of the essential basics of CM the impacts of all crises can be lessened. By having, the right plans and capabilities in place before a crisis occurs, crisis damage to an organization can be minimized and the time to recover from it can be shortened immensely (Mitroff and Anagnos 2001: 6, 20). Regester and Larkin suggest that virtually every crisis contains within itself the seeds of success as well as the roots of failure. Finding, cultivating and harvesting the potential success is the essence of CM. They further state that Successful management of a crisis situation is about recognizing you have one, taking the appropriate actions to remedy the situation, being seen to take them and being heard to say the right things (2005: 163). A consistent theme that permeates the CM literature is the idea that a crisis has an identifiable life cycle. Understanding the crisis life cycle is important because it can be used to foresee expected outcomes for each stage of the cycle (Gonzales-Herrero and Pratt 1995: 26). Crisis managers need to approach each of these crisis stages with a focus to meet the different management needs and challenges represented by different dynamics and dimensions in each stage (Sturges 1994: 300). The crisis life cycle has also been termed a staged approach to CM. A staged approach means the divide of the CM function into discrete segments executed in a specific order (Coombs 2007c: 13). 16

17 One of the most influential staged approaches is crisis expert Ian Mitroff s (1994) five-staged model. The first phase in his model is Signal Detection. Virtually all crises leave a trace of early warning signals. If management can detect and act upon these signals, then many crises can be prevented before they occur, which is the best possible kind of CM. The second phase, which often takes place simultaneously with signal detection, is Probing and Prevention (Mitroff 1994: 105; 2000:40). The aim is to do as much as possible to prevent crises from occurring in the first place and to manage effectively those, which still happen despite best efforts (Pearson and Mitroff 1993: 53). The next phase is Damage Containment. The purpose is to contain the effects of a crisis from spreading further and, hence, from infecting other uncontaminated parts of an organization or the environment. The fourth phase is Recovery. Its primary purpose is to recover normal business operations as soon as possible so that key customers will not be lost. Learning, the last phase of CM, refers to the process of reflecting upon what was done well and what was done poorly so that the organization can handle crises better in the future (Mitroff 1994: ). Coombs offers a different staged approach to CM in his book Ongoing Crisis Communication (2007c). This book develops a systematic approach for synthesizing the diverse CM insights into one comprehensive framework. Coombs divide the CM process into the three macro stages precrisis, crisis, and postcrisis, which each contains separate substages or set of actions that should be covered during that stage. The three stages are general enough to accommodate other dominant CM models, such as Mitroff s (1994) five-stage approach, and to allow for the integration of ideas from other CM experts (Coombs 2007c: 14, 17-18). Coombs divide of the CM process includes the following stages: Precrisis stage: The precrisis stage involves actions before a crisis is encountered and consists of the three substages: (1) signal detection, (2) prevention, and (3) crisis preparation. Crisis managers must develop a system for detecting potential crisis and responding to them. Once potential crises are detected, actions must be taken to prevent them from happening. Crisis managers must be prepared if a crisis still occurs (Coombs 2007c: 18-19). Crisis event: The crisis event stage begins with a trigger event that marks the beginning of the crisis and ends when the crisis is considered resolved. This crisis phase has two substages: (1) crisis recognition and (2) crisis containment. Crisis recognition includes an understanding of how events are labelled and accepted as crises and the means for collecting crisis-related information. Crisis containment 17

18 focuses on the organisation s crisis response. Communication with stakeholders through words and actions is a critical part of this phase (Coombs 2007c: 19). Postcrisis stage: CM does not end when the crisis ends. There are key activities that must transpire after the crisis. Coombs claims that the best learning experience for CM is a real crisis (2005a: ). This stage should involve three steps: (1) evaluating CM, (2) learning from the crisis, and (3) other postcrisis actions such as follow up communication with stakeholders and continued monitoring of issues related to the crisis (Coombs 2007c: 19). The life cycle perspective shows that effective CM must be integrated into the normal operations of an organisation. It is not just about developing a plan and executing the plan during a crisis, but is an ongoing process. Crisis managers continually work to reduce the likelihood of a crisis occurring and to prepare the organization for the day when a crisis does occur. Moreover, crisis managers carefully dissect each crisis in order to improve prevention, preparation, and response (Coombs 2007c: 13-14, 20). While Mitroff s model also attempt to both describe and to give recommendations for how to handle precrisis and crisis stages as well as the postcrisis stage, Coombs model has a stronger focus on all three stages by dividing the postcrisis phase into three substages as well. Further, the several substages in Coombs model, show that the field of CM have more nuances than ever, and is continuously developing with an increased interest in the pre- and post-crisis phases as well as the crisisevent phase (Johansen and Frandsen 2007: ). Fagerli and Johansen claim that in the discussion of CM, terms such as detecting, analysing, sensing, diagnosing, and assessing abound in the various descriptions. Successful execution of these activities enables organizations perhaps not to avoid crisis, but certainly to be proactive in that they are able to prepare for and possibly prevent them. They further argue that what organizations need to emphasise is perhaps not CM but crisis planning (2003: ). Pearson and Mitroff argue that the purpose of CM is not to produce a set of plans but to prepare an organization to think creatively about the unthinkable so that the best possible decisions will be made in time of crisis. A fixed preparation for all crises is not a sensible target. However, a systematic, integrative process of CM is a proper and attainable goal. Anything less invites disaster (Pearson and Mitroff 1993: 59). In today s world, there is no option but to prepare broadly for the unthinkable. It is no longer a question of if a major crisis will strike an organization, but only when (Mitroff 1994: 113). Seeger et al. (2001: 159) 18

19 suggest that remaining open to new information, perspectives, contingencies, interpretations, and alternatives are particularly critical to effective CM. An important part of CM is the consideration of the organization s stakeholders. It is crucial that organizations consider how they might be labelled or perceived by the outside world; given the CM actions they are considering (Pearson and Mitroff 1993: 56). The organization always should know who its stakeholders are, know which are most important, rank them according to importance, and strive to develop and maintain strong relationships with them (Fearn-Banks 2001: 482). Freeman (1984 quoted in Cornelissen 2006: 61) defines stakeholders as any group or individual who can affect or is affected by the achievement of the organization s purpose and objectives. Cornelissen explains the concept of stakes in Freeman s definition as the interest or share that individuals or groups have in an organisation, and that these interests or shares might be varied (2006: 61). Clarkson (1995: 106) divide stakeholders into primary and secondary stakeholder groups. He explains that there is a high level of interdependence between an organisation and its primary stakeholder groups. An organisation is dependent on these groups in order to survive in the market. Primary stakeholder groups are typically comprised of shareholders and investors, employees, customers, suppliers, and public stakeholder groups, which is the government and communities. If primary stakeholders withdraw their support it can severely damage the organisation and hinder it from continuing as an operating organisation. Defined as secondary stakeholder groups are as those who influence or affect, or are influenced or affected by the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival. This includes the media and a wide range of special interest groups (Clarkson 1995: ). An organization s stakeholders are impacted by crises to varying degrees, and their interests and needs are often contradictory. Addressing these multiple and competing needs of an organization s complex audiences during a crisis is an integral component of crisis resolution for both the organization and its stakeholders. Failure to meet the needs of stakeholders in reasonable time can result in these groups intensifying the crisis for the organization (Ulmer and Sellnow 2000: ). Successful organizations are those that communicate openly and accurately to their multiple audiences immediately after a crisis occur (Seeger et al. 2001: 163). 19

20 3.3 Crisis communication Planning cannot prevent every crisis (Mitroff et al. 1987: 285), and at times, corporations must directly respond to corporate crises (Benoit 2004: 263). Effective communication is essential to the success of every organization. Hence, it should be no surprise that identifying and carrying out a series of communication strategies is essential for effective CM (Barton 2001: 62). Fearn-Banks (2002: 2) defines crisis communication as the dialog between the organization and its publics prior to, during, and after the negative occurrence. She explains that the strategies and tactics used are designed to minimize damage to the image of the organization (Fearn-Banks 1996: 3). Although crises can have devastating effects on the organization and its stakeholders, these events can also be resolved positively. The communication following a crisis plays an integral role in this success (Ulmer 2001: 592). Effective CM includes crisis communications that not only can alleviate or eliminate the crisis, but also can sometimes bring the organization a more positive reputation than before the crisis (Fearn-Banks 1996: 2). Coombs claims (2005b: 223) that crisis communication is the lifeblood of the entire CM effort and plays a vital role in all stages of CM. Crisis communication strategies represent the actual responses the organisation uses to address the crisis and have both verbal and nonverbal aspects. Different crises can necessitate the use of different communication strategies as well as an emphasis on different stakeholders (Coombs 1999b: 121, 127). Coombs divides crisis response research into two categories that reflect different emphasises: form and content. Form is how the response should be presented. Content is what is said (2006b: 171; 2007c: 128). The form of a crisis response is mentioned more frequently in the CM writings than any other topic. According to Coombs, this represents the most basic and primitive line of research concerning crisis response, usually resulting in lists of what to do and what not to do. The form recommendations for crisis communications are to be quick, consistent and open (Coombs 2006b: 172; 2007c: 128). Regester and Larkin explain that in crisis situations, it is imperative to tell your own story, to tell it all and to tell it fast (2005: 174). Coombs suggests (2006b: 174) that content research is a more recent development in CM and has proven to be more thorough than the form research. What is actually said during a crisis has serious ramifications for the success of the CM effort. Key goals in the CM process are to prevent or minimize damage, maintain the organization s operations, and repair reputational damage. Clear communication is essential for each of these three goals (Coombs 20

21 2007c: 133). Sturges divides crisis communication content into three sequential categories (1994: 308): 1) Instructing information, which is information that tells people affected by the crisis how they should physically react to the crisis. 2) Adjusting information, which is information that helps people psychologically cope with the magnitude of the crisis situation. 3) Internalizing information, which is information that people will use to formulate an image about the organization. Coombs explains that people are the first priority in any crisis, so instructing information must come first. Adjusting information help stakeholders cope with stress created by the uncertainty and potential harm of a crisis. Stakeholders are reassured when they know what happened and what is being done to protect them from future crisis. Further he explains (Coombs 2007c: ) that internalising information is about reputation management. The idea is that crisis response strategies (CRS) affect how stakeholders perceive the crisis and the organization in crisis (Coombs 2007c: 150). Instructing and adjusting information must always come before internalising information. Audiences may react negatively to messages about what a great company we are in the face of the audience s primary concern for the deeper meaning of the crisis impact (Sturges 1994: 309). Johansen and Frandsen claim that Coombs divide of the research has its advantages, but does not offer much when it comes to the actual scientific research. They suggest a divide of the crisis communication research into two main research traditions, which has developed in two different dimensions. The first research tradition, they explain, is the text-oriented or rhetorical tradition where the primary interest of study is what an organization actually communicates verbally or in writing when facing a crisis. The most influential fields of study in this tradition are apologia, which studies rhetorical defence strategies, and impression management, where the emphasis is on how people through self-representation tries to control their impression on others (Johansen and Frandsen 2007: 200). The second tradition of research is the context-oriented or strategic tradition, which to a larger degree focuses on the context or the situation of research. The first tradition focus on the what and how of communications, while the second tradition is more concerned of where and when it is strategically beneficial to communicate what and how, in order to preserve an organizations image and reputation. In the context-oriented or strategic tradition, the most 21

22 influential theories are in the fields of CM, reputation management and public relations (Johansen and Frandsen 2007: ). Coombs Situational Crisis Communication Theory is a clear representative for this context-oriented research tradition within crisis communication, and this theory will be examined in detail below. 22

23 4 SITUATIONAL CRISIS COMMUNICATION THEORY (SCCT) 4.1 Introduction to the SCCT W. Timothy Coombs is Professor in Communication Studies at Eastern Illinois University, where he teaches crisis management, corporate communications, and public relations. Coombs holds a Ph.D. from Purdue University in Issues Management and Public Affairs. His primary research area is crisis research with a focus on the development and testing of the Situational Crisis Communication Theory (SCCT). Coombs initially presented this theory in his 1995 article Choosing the Right Words: The development of guidelines for the selection of the appropriate crisis response strategies. However, the theory was not named Situational Crisis Communication Theory (SCCT) before 2002 (Coombs and Holladay 2002). Before that, the theory was referred to as the symbolic approach to CM/communication (i.e. Coombs 1995: 447; 1998: 177). SCCT consists of three core elements: (1) the crisis situation, (2) crisis response strategies, and (3) a system for matching the crisis situations and crisis response strategies (Coombs 2006c: 243). The belief is that the effectiveness of communication strategies is dependent on characteristics of the crisis situation. By understanding the crisis situation, a crisis manager can choose the most appropriate response. SCCT is an attempt to understand, to explain, and to provide prescriptive actions for crisis communication (Heath and Coombs 2006: 203, 207). The CRS are what Sturges (1994) calls internalizing information, and are used by stakeholders to help form their perception of the organizational reputation (Coombs 1999b: 128). To be ethical, crisis managers must begin their efforts by using communication to address the physical (instructing information) and psychological (adjusting information) concerns of the victims (Coombs 2007d: 165). Although one study, which examined the effects of vague and detailed instructing responses in accident crises, found no effect on organizational reputation, accepting the organization s story, or willingness to engage in potential supportive behaviour for the organization, the SCCT maintains that instructing information should be taken as given in any crisis situation (Coombs 1999a: 137; 2006b: 185). It is only after this foundation is established that crisis managers should turn their attentions to reputational assets. SCCT provides guidance when crisis managers have met their initial obligations and are prepared to address reputational concerns (Coombs 2007d: 165). 23

24 Coombs explains that although crisis responses are a common topic in the crisis management literature, the discussions are heavily descriptive (1999a: ). Although offering some interesting ideas, the image restoration literature is heavy on description and retrospective sense making through case studies, whereas it is short on predictive value and causal inferences. Scientific evidence demands the process of comparison (Coombs and Schmidt 2000: 163). Relying on single case studies and untested assumptions, limit our understanding of how people respond to crisis and CRS and weakens the field of crisis management (Coombs 1999a: 125; Coombs 2007d: 171). SCCT is offered as an alternative to case studies for understanding how to protect reputational assets during a crisis. Research using SCCT relies on experimental methods and social-psychological theory rather than case studies (Coombs 2007d: 163, 174). SCCT advances and tests hypothesis related to how perceptions of the crisis affect the crisis response and the effects of crisis responses on outcomes such as reputation, emotions, and purchase intention (Coombs 2007a: 137). In most cases, this involves specification of one or several hypothesis. The population for the study typically consists of students from a Midwestern university, the number of participants for the different studies being anywhere between 49 and 518. Different crisis scenarios with following questionnaires are constructed, and randomly distributed to the respondents. Statistical analyses based on the respondents answers are carried out, and the hypothesis are then confirmed or disconfirmed. The SCCT has since its introduction been the subject of extensive testing and revising. In the following, the major changes of the SCCT from 1995 until 2007 will be presented. 4.2 Sources of inspiration for the SCCT The SCCT builds on elements from other theories or approaches Attribution Theory Attribution Theory provides the rationale for the relationship between many of the variables used in the SCCT (Coombs 2007d: 166), and provides a useful framework for conceptualising crisis management, and serves as the basis for explaining the relationships between crisisresponse strategies and crisis situations (Coombs 1995: 448). Attribution Theory expert Bernard Weiner claims that if the outcome of an event is negative, unexpected or important, then people will search for the cause of that outcome. His Attribution Theory posits that people make judgements about the causes of events based upon the dimensions of locus, stability, and controllability (Weiner 1986: 50, 127). Wilson, Cruz, 24

25 Marshall and Rao (1993: 353) explain that Locus assesses whether the cause for an event is in the actor (internal) or in the situation (external). Stability assesses whether the cause for an event always is present (stable) or varies over time and context (unstable). Controllability assesses whether the actor can affect causes that determine the outcome of an event (controllable) or whether these causes are beyond the actors influence (uncontrollable). Coombs suggests that two key traits of crisis are that they are unexpected and negative and, therefore, are logical situations for triggering an attributional search. He translated the principles of attribution theory into language appropriate for crises and organizations (Coombs 2001: 111; 2007a: 136). He suggests that stakeholders will make attributions about the cause of a crisis and they will assess crisis responsibility (Coombs 2007a: 136). Attributions of internal locus, controllability, and stability create the perception that the organization is responsible for the crisis. The reverse is true when the attributions are external, uncontrollable, and unstable. Different crisis situations facilitate certain attributions of organizational responsibility for a crisis. The stronger the attributions of organizational responsibility, the more likely it is that the negative aspects of the crisis will damage the organization. The stakeholders will perceive an organization s image more negatively and will be less likely to interact with the organization (Coombs 1995: 449). Weiner explains that causal attributions and their underlying properties of locus, stability, and controllability in turn generate differentiated affective reactions. Moreover, these diverse affective reactions could generate disparate actions or behaviours (1985: 559; 1986: 127). The attributions stakeholders make about a crisis will generate emotions about the organization and these emotions will affect their future interactions with the organization. Sympathy, anger and schadenfreude are identified as the most important emotions from Attribution Theory for application to post-crisis communication (Coombs and Holladay 2005: 265). Crisis responsibility is related to the affect created by a crisis. Stronger perceptions of crisis responsibility strengthen the negative affect (anger and schadenfreude) while lower perceptions of crisis responsibility are related to positive affect (sympathy). The emotions may require certain CRS in order for the response to be effective and protect the organizational reputation (Coombs and Holladay 2005: 269, 271). One way crisis-response strategies attempt to repair the damage from a crisis is by altering how publics perceive the attribution dimensions (Coombs 1995: 449), or the subsequent feelings attached to those attributions (Coombs and Holladay 2004: 97). 25